Outsourcing has been a saving grace for many businesses worldwide. Companies of different sizes across the board are now getting firsthand experience on the benefits of outsourcing to boost productivity and maintain quality business operations.
Solopreneurs and small business owners who wear multiple hats to get the job done have long enlisted outsourcing’s offer of an extra hand. In fact, 24% of small businesses have outsourced expert assistance to improve business efficiency.
Even known brands and large companies seek the help of an outsourcing company in performing services, creating goods, and other various tasks. Read on to learn more reasons why large firms resort to outsourcing. You might also recognize some examples of the companies that outsource on the list below.
Why Do Enterprise Companies Outsource?
Successful companies create different strategies to maintain growth amidst a highly-competitive global market. Outsourcing is a reliable solution for corporations looking to provide better services and ensure business development.
Here are some skills and tasks that brands acquire from different outsourcing companies:
- Content moderation
- Customer support
- Financing (payroll and financial consultation)
- IT services (IT help desks, application support, or software development)
- Administrative tasks (bookkeeping and inventory management)
There are multiple factors why large organizations commonly consider outsourcing their business functions. Some of the reasons include the following:
1. Reduce operational costs
Arguably, one of the main reasons why corporations outsource is to reduce labor and operating costs. Aside from making the most out of lower salaries in other countries, hiring external help minimizes the need to spend large amounts on operational set-up and maintenance.
Outsourced teams are usually made up of skilled professionals with enough experience and equipment to handle work as soon as needed. Because of this, companies save on the costs of hiring and training employees. Outsourcing also reduces additional costs caused by constantly purchasing resources, from office supplies to office space rentals.
2. Scale and expand the business
Global marketing demands are almost always changing. Organizations must be firm in maintaining company values and flexible in adapting and responding. Outsourcing allows corporations to take on bigger demands without incurring additional labor and costs.
Enterprises also benefit from outsourcing to access new market areas. Companies acquiring help from outsourced employees better understand and comply with relevant local laws, regulations, and business standards.
3. Access a bigger talent pool
It’s difficult for corporations to employ many talented candidates to perform large-scale operations. With outsourcing, work is no longer confined to the four walls of an office as companies utilize impressive talent pools and explore assets and opportunities worldwide.
Many countries are known for offering world-class services. For example, India is a global IT and software development leader, and the Philippines is known for its comprehensive customer service services.
4. Focus on core responsibilities
Companies can delegate non-core activities to virtual assistant services. Global outsourcing firms help organizations find skilled employees that perform time-consuming work more efficiently and quickly. Virtual assistants, for instance, help free up your employees’ plates by handling administrative tasks like paperwork, scheduling, and travel arrangements.
In doing so, in-house employees better dedicate their time and productivity to higher-order projects, such as client strategies or business planning.
5. Maintain 24/7 business operations
Keeping a business running 24 hours per day is costly as corporations have to cover the wages of three employee shifts plus the night shift bonus. With outsourcing, large companies can take advantage of the different time zones to maintain around-the-clock services for client and customer needs.
For example, US-based companies can outsource excellent customer service in the Philippines. Doing so allows firms to keep their customer help desks open even after onsite employees have clocked out. The 15-hour time difference can also reduce costs as night shifts in the US are considered day shifts on the other side of the world.
5 Examples of Enterprise Companies That Outsourced Their Operations
To get a better picture of how outsourcing business tasks successfully help companies grow into the global stage, here’s a list of outsourcing examples you may recognize:
With 89.3 billion total website visits, it’s no surprise that Google has become one of the most recognizable brands worldwide. Starting as a search engine, it became a massive tech company offering hardware and software services. The American multinational technology company has also gained many acquisitions and explored various services in recent years.
Google understands that even with 89,000+ in-house employees, one company can’t possibly do it all. AdWords, Google’s advertising product, hires email and phone support staff worldwide. This tech giant outsources IT service providers, analytical consultants, and app development teams.
Based in the US, Wells Fargo & Company is a global leader in providing financial services, such as online banking, credit cards, loans, and mortgages. The bank enjoys a total market cap amounting to $158.97 billion as of January 2023, making it one of the top five banks in the country.
Wells Fargo outsources some of its non-core business functions to other countries specializing in these jobs. It outsources staff from the Philippines to take the roles of customer support representatives, process engineers, and financial accountants.
An American multinational corporation that barely needs an introduction, Nike is the world’s largest supplier and manufacturer of athletic shoes and apparel. It has also recently ventured into supplying high-quality sports equipment for its audiences.
To cater to the high demands of its millions of fans worldwide, Nike delegates its footwear manufacturing processes to Vietnam, China, the Philippines, Indonesia, and Taiwan factories. Overall, the company has 329 apparel manufacturers operating in 38 countries.
Launched in 2013, Slack is an instant messaging program providing seamless communications for professionals and organizations. It’s a platform with organized spaces to engage in voice and video calls, text messaging, and managing media and files. Due to its convenience, Slack is reported to surpass one billion minutes of usage every weekday.
Slack has become a worldwide success story thanks to the support of an outsourcing company. Its core team was initially composed of four developers. However, they knew that the program needed to look good for audience appeal. With this, they outsourced design teams to establish and refine components of the company, including their logo and website.
With operations in over 171 countries, the International Business Machines (IBM) Corporation drove digital transformation by producing and selling computer hardware and software, providing cloud computing and data analytics. It’s also a major development firm with significant inventions like floppy and hard disk drives.
To concentrate on its research department, IBM relies on outsourced staff to operate some of its IT functions, such as network management and maintenance of its IT infrastructures, including its clients’.
Reap More Benefits with Outsourcing
While outsourcing for small businesses faces current technological innovations, known global firms have long established and enjoyed the benefits of outsourcing company operations. So long as careful planning and execution are properly in place, brands can depend on outsourced workers to perform reliable and professional tasks.
If you’re looking to boost productivity and drive development, consider partnering with an outsourcing company that handles your enterprise’s operational needs, like Outsource Access. From delegating administrative tasks to key marketing support, our top-notch virtual assistant services are sure to get the job done!